Real-time data show slowing recovery
The New York Fed's index of real-time data indicators perked up again last week after moving lower the previous week. The Weekly Economic Index has been choppy since July showing that U.S. growth continues to recover but is sputtering.
Behind the curtain: The increase in the WEI for the week of Oct. 3 was due to a slight decline in initial jobless claims and improving data on rail traffic as measured by the Association of American Railroads, as well as increases in fuel sales and electricity output, the Fed economists behind the index said on Thursday.
- Those readings outweighed a decrease in tax withholding.
The big picture: In its latest quarterly outlook, HSBC says the global economy is entering the second, slower, phase of a two-stage “swoosh-shaped” recovery.
- Mobility data indicates that the slowdown began in the third quarter and the previous strength in consumer spending is also starting to slow, Global Chief Strategist Joseph Little said in the report.